http://dealbook.nytimes.com/2013/08/13/officials-broaden-inquiries-into-oversight-of-bitcoin-and-other-currencies/?_r=0State and federal officials are starting broad investigations into shortcomings in the oversight of upstart virtual currencies like bitcoin.
The Senate’s committee on homeland security sent a letter this week to the major financial regulators and law enforcement agencies asking about the “threats and risks related to virtual currency.” These currencies, whose popularity has grown in recent years, are often used in online transactions that are not monitored by traditional financial institutions.
Benjamin M. Lawsky of New York sent subpoenas to 22 companies that have had some links to bitcoin.
Mr. Lawsky’s office sent subpoenas to most of the companies that have publicly discussed investing in bitcoin or creating software that would allow for the transfer and exchange of bitcoins.
Lawmakers are worried that bitcoin and other alternative forms of money can be used to evade taxes, defraud investors and assist trade in illegal products like drugs and pornography.
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